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I have a question, our company had an employee that is

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separating but will become a...
I have a question, our company had an employee that is separating but will become a commission only based consultant. We are working out the terms and conditions for his commission should he bring in viable business leads. For example, he has a lead to sell a couple of UAV's to a government customer, we manufacture those planes. Our idea is to give him a percentage of the initial sale, however if that same customer comes back 3 months later and requests more or another item we don't want to have to pay additional commissions. Is that acceptable if written into the agreement? Hope I made sense. We don't want to find out he's trying to sue for additional monies. Thank you! GM Btw, our headquarters is in PA.
Submitted: 2 years ago.Category: Business Law
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2/24/2016
Business Lawyer: Ely, Attorney replied 2 years ago
Ely
Ely, Attorney
Category: Business Law
Satisfied Customers: 103,583
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Hello and welcome to JustAnswer. Please note: This is general information for educational purposes only and is not legal advice. No specific course of action is proposed herein, and no attorney-client relationship or privilege is formed by speaking to an expert on this site. By continuing, you confirm that you understand and agree to these terms.

Is that acceptable if written into the agreement?

Sure, why not? Provided that his licensure or your company's licensure or the licensure of the people that control the company does not disallow commissions, then something like this should be perfectly okay. (I know that this focuses on the commission itself, but I am getting to the limit of the commission below.)

A "limit" on the commission is perfectly acceptable provided the parties that are signatories to the commission contract agree. There is no UCC or statutory law that disallows this. A sample verbiage may be:

"Said commission shall not be void and shall not be earned if the customer of said commission orders [certain/any product and/or a total of $___ or more/less] within [time fame] of the original sale."

I hope this helps and clarifies. Please use the SEND or REPLY button to keep chatting, or please RATE when finished. You may always ask follow ups at no charge after rating. Kindly rate my answer as one of TOP THREE FACES/STARS and then SUBMIT, as this is how experts get credit for our time. Rating my answer the bottom two faces/stars (or failing to submit the rating) does not give me credit and reflects poorly on me, even if my answer is correct. I work very hard to formulate an informative and honest answer for you; please reciprocate my good faith with a positive rating.

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